Liberals upset by emerging fiscal-cliff deal

Liberal Democrats, inside and outside Congress, were grumbling Monday as more details emerged about the possible deal to avert the fiscal cliff. It was unclear if the unhappiness would keep the Senate from voting on the measure.

One common complaint was that President Barack Obama did not win any concessions from Republicans on the debt ceiling.

If the limit is not raised by late February or early March, the U.S. would default on its debt.

Republicans have indicated that they will hold their debt-ceiling votes hostage to major cuts in entitlement programs. While President Obama said earlier in the month that he would not “play” this game, there is no sign of his tough stance in this deal.

If Obama does not, “then I fear the White House may have squandered its hard won leverage,” Bernstein said.

Earlier, Sen. Tom Harkin, Democrat of Iowa, took to the Senate floor to complain that the deal did not set an income threshold of $250,000 for higher tax rates. The proposed deal would raise tax rates only on earnings over $450,000 a year.

“This looks like a very bad deal the way this is shaping up,” Harkin said.

Reich called the exemption of the first $5 million in inherited wealth from the estate tax — also part of the deal — “a huge gift to the heirs of the wealthy.”

“On the tax side, [it] lets those who are the most privileged in our society continue to not pay the share I think they should be paying. That is not a good deal. That is not fair, that is not equitable, that is not just,” he added.

Harkin suggested that Democrats walk away from the deal. This would return the higher tax rates of the Clinton-era for all income groups.

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